The two decisions, adopted at the commission’s July 22 meeting, combine a tougher national security approach towards Chinese technology with an effort to accelerate 5G capacity and prepare networks for future 6G services. They could reshape electronics supply chains, mobile investment plans and competition for valuable mid-band airwaves.
The new equipment rule closes a regulatory gap that allowed products made by other companies to reach US shelves even when they contained chips or communications components supplied by businesses on the FCC’s Covered List. Huawei and ZTE are among the companies placed on that list because Washington considers their equipment a national security risk.
Since 2022, new models produced directly by covered manufacturers have been unable to obtain FCC authorisation. Products incorporating their components, however, could still qualify if the finished device carried another company’s brand. The revised policy prohibits authorisation of equipment containing Huawei-made logic-bearing hardware, extending scrutiny from the identity of the final manufacturer to the origin of critical internal parts.
Logic-bearing hardware can include semiconductors and communications components that process information or control how a device operates. Security officials have argued that compromised parts may create vulnerabilities across an entire product, even when assembly and branding are handled by an unrelated manufacturer.
FCC Chairman Brendan Carr said the commission was fully closing the component-part loophole. Huawei had not issued a public response immediately after the vote.
The change is likely to increase compliance demands for electronics manufacturers, importers and testing laboratories. Companies seeking permission to market wireless products in the US may need stronger documentation showing where chips, modules and other sensitive components were designed and manufactured.
Supply-chain tracing could become particularly important for routers, surveillance systems, connected appliances and industrial communications equipment. Smaller manufacturers that rely on third-party circuit boards or modules may face added costs when identifying the origin of embedded components.
The action forms part of a wider campaign against communications equipment linked to covered Chinese companies. The FCC has expanded restrictions on previously authorised products, foreign-made routers and certain drone systems. It is also examining whether telecommunications carriers should be prevented from interconnecting with covered companies operating data centres or internet exchange facilities in the US.
China has repeatedly rejected US national security allegations against its technology companies and has accused Washington of using security concerns to restrict commercial competition. American officials maintain that communications infrastructure and connected devices require stricter safeguards because vulnerabilities can affect government networks, businesses and consumers.
Alongside the equipment restrictions, the FCC approved rules for auctioning 160 megahertz between 3.98 and 4.14 gigahertz. Combined with the lower C-band already assigned for mobile use, the allocation creates a contiguous 440-megahertz block stretching from 3.70 to 4.14 gigahertz.
Mid-band spectrum is prized by mobile operators because it provides a balance between coverage and capacity. Lower frequencies can travel farther but generally offer less bandwidth, while millimetre-wave signals provide high speeds across shorter distances. C-band frequencies can support wider coverage while carrying large volumes of data.
The commission plans to complete the upper C-band auction by July 2027. The sale will offer 3,248 flexible-use licences across the contiguous US and is expected to generate tens of billions of dollars for the Treasury. The lower C-band auction completed in 2021 raised about $81 billion in gross proceeds.
Verizon, AT&T and T-Mobile secured much of the spectrum offered in the earlier sale. The next auction could attract those operators as they seek additional network capacity, although satellite companies, new wireless entrants and technology groups will also watch the licensing structure closely.
Commercial operations in the upper C-band will not begin immediately. Satellite providers using the frequencies must first clear or reorganise their services. Wireless deployment in the 75 largest markets is scheduled to become possible from December 31, 2030, with remaining markets following from July 1, 2031.
The framework identifies Empresa, Eutelsat, Hispasat, SES and Telesat as incumbent satellite operators. Winning bidders will reimburse eligible relocation costs, while incentive payments will be available to operators meeting clearing deadlines.
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